INCOME TAX IN GIBRALTAR

Taxes on income received in Gibraltar are charged through a PAYE style system on current year basis. Single people, married couples, children, dependant relatives, etc, all receive allowances. Mortgage interest, life assurance premiums, pension contributions and building society interest all receive tax relief are all subject to certain conditions. There is no capital gains, wealth or inheritance tax, estate duty or value added tax in Gibraltar.

Personal Income Tax Rates

  

Taxes on income received in Gibraltar are charged through a PAYE style system on current year basis. Single people, married couples, children, dependant relatives, etc, all receive allowances. Mortgage interest, life assurance premiums, pension contributions and building society interest all receive tax relief are all subject to certain conditions. There is no capital gains, wealth or inheritance tax, estate duty or value added tax in Gibraltar.

 

Personal Income Tax Rates

 

Generally tax residents can choose from two income tax systems, depending which one favours the individual most: Gross Income Based System (GIBS) and Allowance Based System (ABS).

Those earning under 11,000 pounds are classed as low income earners and do not have to pay tax.

 

The gross income based system:

This system is a flat rate tax rate with only particular deductions - medical insurance, pensions and purchase of your main residence.

 

Below you have the detailed tax rates:

 

Individuals earning up to 25,000 pounds:

 

6% on the first 10,000 pounds

20% on the next 7,000 pounds

28% on the remaining income

 

 

For Individuals earning over 25,000 pounds: 

16% on the first 17,000 pounds

19% from 17,001 - 25,000 pounds

25%  from 25,001 - 40,000 pounds

28% from 40,001 - 105,000 pounds

25% from 105,001 - 500,000 pounds

18% from 500,001 - 700,000 pounds

10% from 700,001 pounds and over

 

The allowance based system:

The first 4,000  pounds of taxable income 14% 
The next 12,000  pounds of taxable income 17% 
The remainder of taxable income 39%

 

All allowance based taxpayers benefit from an automatic tax cut based on the higher of 300 pounds or 2% of the tax bill.